Stock futures slightly lower on tapering and inflation fear

This 1-month situation has been shaky with the Fed Jerome Powell confirmed tapering and drastic change in economic data. Recent job data show a major setback to recovery which might delay tapering. Aside from that, the central bank around the world also discussing tapering but continue uncertain as inflation rising.

Traders and investors seems will approach the rest of the trading months cautiously. The stock market might trade sideways with choppy sessions before major news releases. Moreover, if the covid cases start to increase rapidly again then the recovery outlook will be scrapped for the short term.

Asian & European Stock market

The Asian stock market is lower. Japan Stock market down 173.02 points (-0.57%) to 30,008.19, China stock market up 17.94 points (+0.49%) to 3,693.13, and Australia ASX 200 down 142.50 points (-1.90%) to 7,369.50. The European stock market is mostly under pressure. DAX Germany down 0.30%, UK FTSE down 1.13%, Euro STOXX 600 down 0.42%

Technical Analysis

Dow Jones Industrial Average (INDU)

The bearish pressure on the DJIA index managed to stop at the daily SMA 50. However, the index is set to trade under bearish pressure again today as the DJIA futures are lower 50 points. If the index trade is lower then the daily SMA 100 might become a downward target.

A close below the SMA 200 will trigger a deeper bearish correction with SMA 200 as the target.

Wendys Company (WEN)

WEN share prices seem supported by the daily SMA 200 and managed to bounce from it several times. At the current time, WEN is trading near the daily SMA 50 & 100. Traders will expect a bounce from the averages and bullish continuation to surpass the previous swing high.